(Newser)
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Berkshire Hathaway has agreed to buy up the 77.4% of railroad operator Burlington Northern Santa Fe it didn’t already own for $26 billion, in what would be Warren Buffett’s largest acquisition ever. “It’s an all-in wager on the economic future of the United States,” says Buffett. “I love those bets.” Buffett says he uses railroad data as an indicator of the nation’s financial health.

Most railroad executives believe that freight volume has bottomed, and that the industry is poised to recover, and Burlington is seen as one of the best-run operators, the Wall Street Journal reports. Berkshire will pay $100 per share, a 31% premium on yesterday’s closing price, meaning the deal values the company at $34 billion.

air travel used to be for the rich. it's all just a little bit of history repeating! lol

Yourself

Nov 3, 2009 4:14 AM CST

huge balls, and a HUGE bank roll to go with it. I'd be making the same bets if you gave me the same amount of play money to make those bets. The rich get richer, which is just the way the game is played.

JoeQ

Nov 3, 2009 3:19 AM CST

Smart move. Its a long-run play, though, sort of an oil crisis play. Railroad stocks go up during an oil crisis. Railroads are not very exciting but they carry goods around for a fraction of the cost of trucks. We will still need to buy our local Walmart junk. Diesel electric engines pulling things on rails are very efficient. If and when Peak Oil finally starts to be felt, air travel may become only for the rich. Then older transportation technology will do the best.